Bienvenidos 10th Anniversary Fiesta

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Bienvenidos10th Anniversary Fiesta!!

• September, 2008

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• Overview

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History

• MexDer, The Mexican Derivatives Exchange was
  launched in December 1998 nowadays is one of the
  most dynamic Derivatives Exchanges worldwide.
• Over the last years we have had important
  achievements
• 1998 First Future Contract on MXP/U.S. Dollar
  listed in MexDer on
• an open outcry trading.
• 1999 Interest Rates and Index Futures Contracts
  Listing.
• 2000 Electronic Trading.
• 2002 Market Makers (electronic access).
• 2003 Partnership with MEFF.
• 2004 Development of the options market.
• 2006 Remote Participants.
• 2007 Emerging Market of the year.
• 2008 Bolsa Mexicana Group IPO.

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A Modern Exchange

• On June 13th, 2008 Bolsa Mexicana de Valores
  (Mexican Stock Exchange) was listed and initiated
  trading as a public company.
• With the resources from the IPO, Asigna
  (Derivatives Clearing House) was acquired by the
  BMV. We have now a fully vertically integrated
  exchange.
• The integration of these entities will make
  MexDer, as part of the Bolsa Group a much modern
  and efficient marketplace.

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Asigna Central Counterparty
SELLER
BUYER
SELL
BUY
Local Rating AAA (mex) mxAAA/mxA-1 local
currency AAA.MX
Global Rating BBB/A-3 foreign currency BBB/A-2
local currency A1
Fitch Rating Standard Poors Moodys
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Our ProductsFutures Contracts

• Currencies
• Mexican Peso / U.S. Dollar
• Mexican Peso / Euro
• Indices
• IPC (Mexican Stock Exchange Index)
• Individual Stocks
• Cemex CPO, Femsa UBD, Gcarso A1, Telmex L, Amx L
• Fixed Income
• 28 days TIIE (Interbank Interest Rate)
• 10 year Interest Rate Swap Futures based on the
  28 day TIIE
• 91 days Cetes (MXP Treasury Bill)
• 3 year Fixed Rate Bond in MXP (M3)
• 10 year Fixed Rate Bond in MXP (M10)
• Inflation Index (UDI)

New!
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Our ProductsOptions Contracts

• Currencies
• Mexican Peso / U.S. Dollar
• Indices
• Futures on IPC
• Individual Stocks
• Amx L
• Naftrac 02
• Walmex
• Cemex

New!
New!
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Structural Changes2006-2007

• No Withholding Taxes for
• Capital gains in fixed income derivatives traded
  in MexDer. (2006)
• Options on Single Stocks.(2008)
• Give Ups.
• Adoption of the FIA standard agreement.
• Omnibus Accounts.
• In accordance to the CFTCs rule 30.7, two
  accounts are allowed
• One for Proprietary trading.
• One for Customer trading.
• Remote Membership.
• IOSCO technical committee members.
• CFTC No-Action Letters (IPC futures screens).
• FIX Access.
• Other collaterals accepted (USD and T-Bills).
• More local participants (Pension Mutual Funds).

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28-Day TIIE Futures Contract Evolution
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10 Year Swap Futures
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28 Day TIIE Futures 10 Year Swap Futures
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• 10-Year Bond Futures Contracts

• Monthly Average Traded Volume(thousands of
  contracts)

• Pension Funds actively trading this product.
• Arbitrage opportunities
• Most efficient way to hedge and short positions.
• From 2006 to June 2008

• The monthly average volume has
• increased in more than 359.

• The number of Participants has
• increased 50.

Foreign Investment in MXP Debt Government
Securities by July 2008.

• It is a 10 year fixed rate bond issued by the
  Mexican federal government.
• One of the most actively traded fixed income
  securities in Mexico.
• It has become a benchmark for Mexican domestic
  interest rates.

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• IPC Index Futures Contracts

• Monthly Average Traded Volume(thousands of
  contracts)

• From 2002 to July 31,2008, the IPC Index nominal
  growth was 329 in MXP and 336 in USD.
• Most efficient to way to short the Mexican equity
  market.

Foreign holdings in the cash equity market, as a
percentage of the Market Cap by July 2008.

• Local Holdings in Equities 252.5 Billion USD.

• The IPC is a capitalization Index and the leading
  indicator of the Mexican Stock Exchange
  performance.
• The IPC indicates the market return based on
  price variations in a balanced, weighted and
  representative sample of the stocks listed on the
  Mexican Stock Exchange.
• The easiest and cheapest way to short the Mexican
  equity market.

• Foreign Holdings in Equities 146.03 Billion USD.

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Volatility Index Mexico (VIMEX) vs VIX
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Orders and Trades in the Options Market.
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Its easy to participate!

• As an Omnibus Account.
• Handling costumer accounts through a Trading
  Member or a Clearing Member.

• As a Client.
• Proprietary Trader as a costumer of a Trading
  Member.

• As a Remote Member.
• Non-Clearing Remote Membership with direct access
  to the trading system.

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Now you can participateas an Omnibus Account

• An Omnibus Account allows a foreign intermediary
  to handle multiple clients in the market.
• Disclosure of clients information is not
  required.
• This useful tool allows your clients to trade
  MexDer easily and faster.

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Remote Membership

• Non Clearing Membership.
• No local presence required.
• Fix Connection.
• Trades are settled in Mexico through a local
  Clearing Member.

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Collaterals Accepted.

• Deposited in the U.S
• US Dollar (cash).
• T-Bills.
• T-Notes.

• Deposited in Mexico
• Eligible Mexican Stocks.
• Eligible Mexican Bonds.
• Cetes (Mexican Treasury Bills).

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Coming Up Next !!!

• Proximity
• Colocation

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Coming Up Next !!!
Flex Options
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MexDer A Modern Exchange with
International Appeal.
USD collaterals

• Omnibus Accounts

CFTC Approved products
Remote Membership
Fix Access - MexFix
No Withholding Taxes
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Contact Us!
Its never been so easy.
From the US
Berenice Corral
bcorral_at_mexder.com
1 866 MEXDER1
52 (55) 5342-9930
The leading Marketplace for trading derivatives
on Mexican benchmarks
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10th Anniversary Fiesta!!